RETURN EXPECTATIONS
Snowball pursues core-plus and value-add investments with a target IRR of 15%—25% over a 3 to 7 year hold period based on the risk profile of the transaction.
Investment
Criteria
Investment
Criteria
Markets
RETURN EXPECTATIONS
Snowball pursues core-plus
and value-add investments
with a target IRR of 15%—25%
over a 3 to 7 year hold period
based on the risk profile of
the transaction.
Snowball targets submarkets within the Tri-State region that are experiencing strong leasing fundamentals in combination with population growth due to their proximity & accessibility into New York City. In most cases, these markets are still recovering from the de-industrialization trends of the past three decades and the great financial crisis that have created a disjointed urban landscape lacking investment. Urban industrial assets that are experiencing a resurgence due to last-mile logistics are favored as well as flex or manufacturing assets benefitting from the current on-shoring movement are increasingly attractive investment opportunities.
Within urbanized NYC, Snowball is witnessing the gradual erosion of its industrial base, particularly in waterfront adjacent locations around Lower Manhattan, the Brooklyn, Queens, South Bronx and Hudson County NJ. These areas are where Snowball envisions population growth is set to be more pronounced which in turn will driving demand for newly constructed residential and commercial space.
The flight of industrial users pushed out by gentrification forces is driving industrial demand for the greater Tristate region, with second-order effects being felt as far as Central Connecticut, Eastern Pennsylvania and Southern New Jersey. With a focus on acquiring assets with a large land basis, our investment thesis follows that industrial land is the scarce resource most worth pursuing.
Sectors
Industrial
Industrial assets are Snowball’s preferred investment strategy and the backbone of our growing portfolio. Leveraging our significant experience in this sector and strong market fundamentals, Snowball’s industrial criteria is broader seeking single assets (multi-tenant or single-tenant) requiring capital investment or leasing risk to clustered multi-tenant industrial portfolio opportunities.
✳
The core strategy is to acquire the maximum amount of land with the least amount of building Net Operating Income to minimize our land basis. From there, we seek to acquire assets where the contractual rent growth generated by the building's tenants has a clear path to resetting to market in a defined timeframe. Finally, the assets themselves must create the opportunity for additional value-add initiatives that can be exploited by Snowball's experienced management team.